Jharkhand High Court
National Insurance Company Limited vs Usha Devi Wife Of Late Satrughan Sharma on 31 July, 2025
2025:JHHC:21168
IN THE HIGH COURT OF JHARKHAND AT RANCHI
M.A. No. 271 of 2016
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National Insurance Company Limited, First Floor, Hindustan
Building, Main Road Bistupur, P.O-Jamshedpur, District -
East Singhbhum (Jharkhand) through Assistant Manager,
Jharkhand Legal Cell-Ranchi Branch-II Premises, Kachahri
Road beside Gopal Complex, Ranchi, P.O-G.P.O, P.S - Kotwali,
District -Ranchi (Jharkhand) ... ... Appellant
Versus
1. Usha Devi wife of Late Satrughan Sharma, resident of H.No.
56, Naya Bazar, Jugsali, P.O & P.S-Jugsalai, Town
Jamshedpur, District- West Singhbhum (Jharkhand).
.......... Claimant/Respondent
2. Ghanshyam Singh son of Ramayan Singh (Owner of the
offending vehicle Maruti Car No. BR-16A-0040), resident of
Church Road, Golmuri, P.S & P.O-Golmuri, Jamshedpur
District - East Singhbhum (Jharkhand).
...... Opposite party no. 1 / Respondent
3. Shiv Charan Baskey, son of G.R. Baskey, resident of Church
Road Golmuri, P.S & P.O-Golmuri, Jamshedpur, District - East
Singhbhum (Jharkhand)
... ... Opposite party No. 2/ Respondent
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For the Appellant : Mr. Amaresh Kumar, Advocate
For the Resp. No.1 : Mr. Jitesh Kumar, Advocate
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PRESENT
HON'BLE MR. JUSTICE ARUN KUMAR RAI
JUDGMENT
C.A.V. on 15.07.2025 Pronounced on 31.07.2025
1. Heard Mr. Amaresh Kumar, learned counsel appearing
on behalf of the appellant and Mr. Jitesh Kumar, learned
counsel for the respondent no.1 (claimant).
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2. The instant Miscellaneous Appeal has been preferred
on behalf of appellant-The National Insurance Company Ltd.,
against the award dated 06.01.2016 passed in Compensation
Case No. 67 of 2013, whereby the District Judge III-cum-
Motor Vehicles Accident Claim Tribunal, Jamshedpur has
allowed the application filed under Section 140 of Motor
Vehicles Act, 1988 (in short, M.V. Act) and awarded
compensation of Rs 50,000/- to be paid within 30 days and in
case of failure to do so interest @ 12% from the date of award
till realization.
Factual matrix of the case
3. Brief facts of the case are that, the deceased
Satrughan Sharma was an ex-employee of the Tata Steel. On
11.08.2010 at about 12:00 noon while he was going towards
Ghatshila from his Hero Honda Motorcycle bearing registration
no. JH05 AA 2390 from his house, an unknown car, being
driven in a rash and negligent manner, hit him, causing him to
suffer serious injuries. Deceased was brought to T.M.H.
hospital and during the treatment he succumbed to injuries.
4. On the basis of fardbeyan of informant, an F.I.R. has
been registered at MGM (Mango) Police Station being P.S. Case
no.342/2010 dated 17.08.2010 under Sections 278/304-A of
IPC against driver of unknown vehicle. During investigation,
Maruti car bearing registration no. BR 16A/0040 was identified
as offending vehicle.
5. An application under Section 140 of M.V. Act has been
filed before the Motor Vehicles Accident Claim Tribunal,
Jamshedpur for interim compensation by the dependents of
deceased against owner of offending car, driver of the said car
and appellant- Insurance Company being insurer of the Hero
Honda motorcycle bearing registration no. JH05AA 2390 which
was being driven by the deceased.
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6. Record of the Tribunal reveals that, certified copy of
the F.I.R., death certificate of the deceased, certificate of
registration of Hero Honda motorcycle bearing registration no.
JH05AA 2390, post mortem report of the deceased and the
insurance policy of Hero Honda motorcycle bearing registration
no. JH05AA 2390 have been brought on record by the
dependents of the deceased.
7. After considering the materials available on record,
learned Tribunal passed the award dated 06.01.2016 directing
the appellant-Insurance Company to pay Rs. 50,000/- as
interim compensation under Section 140 of M.V. Act.
8. Learned counsel for the Insurance Company
vehemently argued that it is claimant's case that, it is the fault
of Maruti car on account of which accident took place which
resulted into the death of Satrughan Sharma and learned
Tribunal has despite directing the insurer or owner of Maruti
car asked the insurance company of the motorcycle bearing
registration no. JH05AA 2390 to pay Rs.50,000/- which is
erroneous and not in consonance with law in view of judgment
of Hon'ble Supreme Court in "Ramkhiladi and another vs.
United India Insurance Company and another" reported in
(2020) 2 SCC 550, as the deceased is not the third party and
he is second party. While arguing the matter, learned counsel
further submitted that no liability of insurance company would
arise under Section 147 of M.V. Act, but has very fairly
conceded that as per insurance policy, the deceased is entitled
for Rs.1 Lac as Personal Accident cover was there which makes
entitlement of the driver/owner for Rs.1 Lac in case of death,
but not under M.V. Act rather, claimant ought to have
approached consumer forum for the same.
9. Per contra, learned counsel for claimant submitted
that insurance company cannot be allowed to agitate this issue
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before appellate court. Further, it has also been submitted on
behalf of claimant that in Ramkhiladi case, claim was made
under Section 163-A of M.V. Act and in the present case, claim
has been made under Section 140 of M.V. Act, as such, ratio of
Ramkhiladi is not applicable in the present case.
10. Learned counsel for the claimant further submitted
that when the insurance company is accepting its liability to
the extent of Rs.1 Lac, then no technical plea ought to be taken
on behalf of insurance company which could debar the
claimant; who has received only Rs.25,000/- after the accident
which took place in the year 2010.
11. Heard both the learned counsels at length and
perused the record of Tribunal. It transpires that the deceased
Satrughan Sharma was owner of the motorcycle bearing
registration no. JH05AA 2390.
12. One supplementary affidavit dated 15.07.2025 has
been filed by the claimant stating therein that an application
under Section 166 of M.V. Act has been filed before the
M.A.C.T., Jamshedpur and the same has been numbered as
M.A. Claim Case No.55 of 2020.
13. This Court has carefully gone through the impugned
award dated 06.01.2016 passed by the Tribunal and finds that,
the insurance company had taken a plea that deceased being
owner of the motorcycle was not third party, therefore there is
no liability at all of the insurance company. But the Tribunal
has taken cognizance of the insurance policy and has observed
that premium of Rs.50/- for P.A. claim to owner-cum-driver
has also been paid to the insurer. There is no specific finding of
the learned Tribunal as to whether the deceased (owner of
motorcycle) was third party or not and on the basis of
insurance policy which also covers P.A. claim and strict
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liability of insurer, allowed the application filed under Section
140 of M.V. Act, 1988.
14. The point for consideration before appellate court is
that, the issue agitated on behalf of the appellant-insurance
company as to whether the deceased was third party or not,
should be considered at the appellate stage when the enquiry
under Section 166 of Motor Vehicles Act, 1988 is still pending
before the Tribunal and, that too, when insurance company is
accepting its liability to the extent of Rs.1 Lac on account of
P.A. cover.
15. This Court finds force in the submission advanced by
the learned counsel for the claimant. Undisputedly, there was
Personal Accident cover in the insurance policy of the
motorcycle which was being driven by the deceased, as such,
deceased being owner of motorcycle having registration no.
JH05AA 2390, even otherwise, is entitled for Rs.1 Lac and if
the Tribunal has awarded Rs.50,000/- as interim
compensation under section 140 of M.V. Act, the same is, even
otherwise, justifiable.
16. This matter should be taken from other angle also that
the M.V. Act is considered as a beneficial and welfare-oriented
piece of legislation, particularly concerning compensation for
victim of road accident and dealing with case of compensation
under M.V. Act, Court should interpret it liberally to ensure the
just and fair compensation to the victim of accident case.
17. With regard to the issue raised by the appellant this
appellate court is of considered view that, if such issue is
raised before the Tribunal, then, the same ought to be decided
by the Tribunal, where still enquiry under Section 166 of M.V.
Act, 1988 is pending, as to whether the deceased was third
party or not. Therefore, this Court restrains to make any
comment on the said aspect.
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18. In view of aforesaid discussions, this Court is of
considered view that there is no infirmity in the award. As
such, the impugned award dated 06.01.2016 passed by the
District Judge III-cum- Motor Vehicles Accident Claim
Tribunal, Jamshedpur in Compensation Case No. 67 of 2013
is, hereby, affirmed.
19. Resultantly, the instant appeal is dismissed.
20. It appears from the record that insurance company
has deposited two cheques bearing nos. 309003 and 309004
dated 06.02.2019 for Rs.25,000/- each in the name of claimant
Usha Devi W/o Late Satrughan Sharma and one cheque
bearing no. 309004 of Rs.25,000/- dated 06.02.2019 is lying
with the Tribunal, needless to say that the same would have
become stale being of year 2019 and another cheque bearing
no. 309003 of Rs.25,000/- dated 06.02.2019 has been handed
over to the claimant.
21. The statutory amount deposited by the insurance
company be remitted to the Tribunal by learned Registrar
General of this Court within a period of four weeks from today.
Insurance company is directed to deposit the interest part @
12% per annum as awarded by the Tribunal before the
Tribunal within 45 days. Thereafter, the Tribunal/executing
court will disburse the remaining balance of Rs.25,000/- which
will be remitted by learned Registrar General of this Court
along with interest to the claimant after due notice and
verification.
(Arun Kumar Rai, J.)
High Court of Jharkhand at Ranchi
Dated, the 31st day of July, 2025
R.K./-N.A.F.R.
